Employment Dynamics on Business Estates

Joris Knobena*Both have contributed equally to the manuscript. & Anet WeteringsbcBoth have contributed equally to the manuscript. a Department of Organisation Studies & Center for Innovation Research , Tilburg University , P.O. Box 90153, 5000, LE, Tilburg, The Netherlands b Netherlands Environmental Assessment Agency , P.O. Box 30314, 2500, GH, The Hague, The Netherlands c Rotterdam School of Management , Erasmus University , Rotterdam, The Netherlands * Department of Organisation Studies & Center for Innovation Research, Tilburg University, P.O. Box 90153, 5000, LE, Tilburg, The Netherlands E-mail: j.knoben@uvt.nl The central question of this paper is: “What is the magnitude of different forms of employment dynamics on business estates in the Netherlands between 2000 and 2005 and to what extent are the employment dynamics on business estates different from employment dynamics in general?” In order to answer this question, we examine three kinds of local employment dynamics: (1) entries and exits, (2) inter-municipal relocation and (3) the growth/decline of existing firms. We find that new firm formation and inter-municipal relocation do not lead to employment growth on business estates. However, the in situ employment growth on business estates is higher than the general employment growth in the Netherlands. Therefore, it can be concluded that business estates play an important role in local employment dynamics by facilitating the growth of incumbent firms.